[FINERACT-2117] In advance payment strategy: Early Repayment/Late repayment Interest Calculation

• Type: Improvement
• Status: Open
• Priority: Minor
• Resolution: Unresolved
• Component/s: Loan
• Assignee: Unassigned
• Reporter: Jose Alberto Hernandez
• Created: 15/Aug/24 16:31
• Updated: 19/Aug/24 11:20

Description

Progressive interest bearing loan product shall support: Early and late payment situations where interest recalculation is enabled.

In case of an early payment (in advance payment) we have different strategies that can be used.

One of these strategy should be:

• Adjust last, unpaid period

The rule is simple, in case of an in advance payment the EMI of the last, unpaid period to be amended.

Why last?
We would like it to be reflected only at the end of the loan term, dont wanna change the EMI of the rest of the periods.

Why unpaid?
It might happen the last installment was fully paid (if transaction processor is set to allocate to the last installment the in advance, excess payment) and we need to amend the last but one period in that case.

Issue Links

• links to: GitHub Pull Request #4025